Financial Analysis and Operation Analysis of Pinduoduo Based on SWOT

Abstract

With the rapid development of the income level and e-commerce in China, the low-consumption population is gradually being overlooked by merchants. Nevertheless, founded in 2015, Pinduoduo (PDD) has made a spectacular achievement, precisely noticing and targeting the sinking market, reaching a huge success. Thus, in this paper, the author mainly focused on the reason why PDD could thrive in the competitive Chinese e-commerce market and PDD’s successful marketing strategies. In addition, based on SWOT analysis, the author investigates the main strengths, weaknesses, opportunities, and threats that are related to PDD. The author also collects and analyzes data from its financial reports. Based on these analyses, the author will correspondingly give suggestions that will be beneficial for PDD’s future development. Consequently, the author finds that even though PDD is successful in operating, it has a large number of problems, for which needed to transform itself from mid-to-high tier by providing better services.